######## = Prosperity!

Warning... this blog is under construction. You may need to come back because I'm adding more as I go along.

OK... here's one for the Halloween party! A Question: Two and a half billion people live on less than two dollars a day, the average annual income for the world is about $8,700. Yet the median income in the USA is over $47,000! Why is the average American so rich?

Ask people!

The answers may amaze you! Few people really know. I got the idea from watching John Stossel's latest show on Why is America so Rich?  But I must admit when I ask people I really am shocked by how little people know...

Most just have no clue... some might concoct something from a movie they saw.... some will suggest... Exploitation, Resources, Banks, Democracy, our Military... hmmm... eh...No!

The answer should be loud and clear... it's ######. And the big reason we are having an economic downturn... the erosion of #######. Curiosity comes in many forms. People will certainly be curious when they notice their wallet is empty. Their friends may have been hauled away to jail for breaking one of those millions of rules... oh well... too bad for them... another might have disappeared after they lost their job, then their home... they might have just been lazy... but when the time finally comes that a person realizes they just don't have as much as they thought they did... they might start to think... Why?



Why am I poor? ...is obviously one of those questions to avoid. I'm sure most just figure it's just them. They can probably rationalize... hell, I'm not perfect, I've certainly made mistakes... it must have been me. But I'll keep that to myself!

Unfortunately, most will do this because they've never been told anything but...they've been showered with messages almost since birth... their miserable people and they are only attractive when their spending lots and lots of money on the products that everyone loves! And as for the educational system... I doubt anyone will be told why America is so prosperous... or was. Because the teachers surely don't know either. They would be in Maui relaxing on the beach if they knew the secret to success!

As a nation, we have actually been headed down this road for some time now...the mid 1970s was the pinnacle of the middle class's wealth and ever since although some things have indeed improved... many other things haven't as the majorities attention was diverted to other things. It can be seen in things like health care, education, economic well being...to name just a few. People aren't as healthy 2/3rd of children are overweight these days.  People aren't very smart either... America now ranks on the low end when it comes to comparisons to the industrialized world on academics. And when the average 18-24 year old has about a 50/50 chance of having a job... it's certainly economic!

But there is hope... there is always hope in America because even though most people don't know it... we do have a history as people that overcome obstacles. And the greatest obstacle in our way isn't that difficult at all to get over... it's ignorance. We can point the finger at all the people that we could blame... or we could just get educated!

No one said the Constitution also has a financial benefit... when we abide by it... when the government is limited to the responsibilities given to it and no more... Prosperity is almost guaranteed! Sure... there's work involved, there's responsibilities, one will have to use their head... but all that is rewarded in a FREE society! Most of us have been fooled for so long that the only way to get ahead is with a good credit rating! A 800 credit score is a person surely on their way to millions! But how you get that score could as easily be by hook or crook than by genuine hard work and effort. That all began about a 100 years ago... 1913 to be exact. But you can find that in another blog...

So, when you ask that question... Here's the answer so you can impress your friends! And if you really understand... you'll be well on your way to being rewarded if you can convince them that it's true!

Why are we prosperous?  Freedom!

More specifically:

1) Rule of Law - contrary to what everyone blurts out on TV... we are not a Democracy... we are a Democratic Republic... the difference is... the adherence to...the Rule of Law. This also means a right to contract. The basis for every transaction.

2)  Right to Property - property is in effect the fruits of our labor. One works, one earns, one purchases, one improves... on and on...but if one worked and collected... and then someone else just came along and took all that stuff... pretty soon one wouldn't be so inclined to do anything.

3) Freedom from Corruption - this certainly goes along with number two... but there's all kinds of ways to be corrupted. Just look at the Federal government. Of every dollar spent somewhere between 20-25% actually makes it to the purpose it was supposedly spent for. When corruption is curtailed... people find that their work actually has rewards!

4) Little Government Spending and Regulation - this is one people have the hardest time with because they've been so indoctrinated with looking to the government to solve every problem. Whether it's NFL players taking hormones, a Hurricane or WMDs in Iraq the only solution ever mentioned is... call Congress! But the facts are that government wastes money that would otherwise be much more efficiently spent. Just imagine the money that is taken out of one's paycheck each week. Who do you think would spend it more wisely? Congress or the person who actually sweat and labored for it? This goes to the heart of accountability and responsibility? The people in DC aren't held to any standard of accountability or responsibility. And so putting money in their hands is just like giving a teenage boy a case of beer, a credit card and the keys to the Mercedes. So the farther we stay away from that, the more prosperous we become. Even the Fed agrees! A report in March of 2010 states "We find that states with greater economic freedom – defined as the protection of private property and private markets operating with minimal government interference – experienced greater rates of employment growth."
5) Labor Freedom - When people aren't restricted from following their dreams... it's amazing what can happen. You may think the minimum wage is a good idea... but lets just say you always wanted to be a fisherman... so you go down to the dock and there is a fishing boat...with a crew, you speak to the captain and he says... he would love to have you but he just can't afford $10 an hour. You suggest that you'd just be happy to learn...until you were worthy of the paycheck. That sounds wonderful up until the point you find out that both of you could end up in jail for that agreement. (That certainly isn't freedom to contract... and that's probably why our businesses are packing up and heading overseas)

Where are the economically free countries?  Index of Economic Freedom

More specific information on why freedom equals prosperity. Economic Foundations of Freedom

Best states to to business in according to Forbes.



Don't give up on America. Just educate people. America and the world can be a much better place if we learn from our mistakes... and learn what is truly important. Freedom isn't just the last words in the movie Braveheart... they mean a whole bunch more!